TotalEnergies (TTEF.PA) announced on Tuesday that it would acquire the remaining 70% stake in renewable energy company Total Eren that it did not already own, increasing its stake from 30% to full ownership.
TotalEnergies said the transaction values Total Eren on an enterprise value basis of 3.8 billion euros ($4.2 billion). Acquiring the additional 70.8% stake in Total Eren represents a net investment of around 1.5 billion euros for TotalEnergies.
"With the acquisition and integration of Total Eren, we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player," said TotalEnergies Chairman and CEO Patrick Pouyanne.
Total Eren's integration is expected to increase TotalEnergies' integrated power net operating income by around 160 million euros and cash flow from operations (CFFO) by around 400 million euros in 2024, added the company.
